Madam President, yesterday the Senate rejected two bills to provide funding for the rest of this fiscal year. I voted against both bills, and I want to explain why and to explain what I believe is the only course open to us if we are to be…
Madam President, yesterday the Senate rejected two bills to provide funding for the rest of this fiscal year. I voted against both bills, and I want to explain why and to explain what I believe is the only course open to us if we are to be serious about reducing the budget deficit.
It was a victory for the American people when the Senate voted overwhelmingly to reject the spending bill sent to us by the House. House Republicans who tell us they want to reduce the deficit have proposed a cure that does little to cure our budget disease and does great damage to the patient in the meantime.
The House bill proposed cuts in nondefense discretionary spending, and in that area alone. Simple math suggests that we cannot meaningfully reduce the deficit in this manner. These programs represent less than 15 percent of the total budget. Not surprisingly, then, the Republican proposal would reduce our projected budget deficit this year by only a token amount. As a matter of fact, it would reduce our budget deficit this year by less than 1 percent.
The Republican plan fails the test of seriousness about the deficit, but it would have done significant damage to programs that Americans depend on. It would have cut more than $1 billion from Head Start. It would have eliminated early childhood education programs for more than 200,000 American children. It would have cut or eliminated Pell grants for hundreds of thousands of college students. It would have cut $61 million from the budget request for food inspections, despite the fact that thousands of Americans every year suffer from foodborne illnesses. It would have cut $1 billion from the Women, Infants and Children Program, weakening a program that helps poor families put food on the table. It would cut $180 million from the Securities and Exchange Commission budget and more than $100 million from the Commodity Futures Trading Commission budget. And those are the regulators. Those are the cops we need on the beat to make sure we oversee the financial markets that recently devastated our economy.
It would have cut nearly $290 million from the Veterans' Administration efforts to provide better service to our veterans.
The House budget would have cut $1 billion of funding for community health centers, eliminating primary care for millions of Americans.
The proposal of the House of Representatives, which we soundly defeated here yesterday, would have cut $550 million from National Science Foundation research, another $1 billion plus from Department of Energy research, and almost $900 billion from our support for renewable energy sources and energy conservation. All of that would make us even more dependent than we now are on foreign oil.
The Republican proposal from the House would have cut $2 billion from clean water programs, putting public health at risk, and it would have cut $250 million from the Great Lakes restoration efforts.
The House proposal would have cut more than $120 million from the President's request and more than $350 million from the fiscal 2010 level from border security efforts. That is the very issue--border security--which the Republicans, including the Speaker of the House, have called their No. 1 priority. Yet their budget would have cut more than $350 million from the 2010 level for border security.
We need to make spending cuts, and I think all of us know that. We have to reduce and remove redundancy and inefficiency in the government, and it exists. The President has proposed cuts. We need to seek more cuts and we need to act. But the cuts the Republicans proposed aren't about increasing efficiency. Their proposal, as Senator Manchin pointed out yesterday, blindly hacks at the budget with no sense of our priorities or of our values as a country. So we wisely rejected that path.
We also rejected a second proposal, and I voted against that one as well. I rejected it because while it avoided the
blind hacking at the budget in which the House Republicans engaged, it focused solely on cuts in nondefense discretionary spending. We had two choices yesterday, Draconian cuts or more targeted cuts. But those are not the only two choices available to us. We can choose to seriously address our budget deficit by acknowledging that it cannot be significantly reduced until we understand that increased revenue as well as spending cuts is part of the solution.
How can we raise additional revenue without slowing the economy? We can end the excessive tax cuts for the upper income taxpayers President Bush put in place. We can close tax loopholes that not only drain the Treasury but send American jobs abroad to boot.
The cost of the government to continue that upper bracket income tax cut President Bush was able to obtain is about $30 billion a year. Ending that $30 billion tax cut, which goes to roughly 2 percent of Americans at the very top--those earning more than $200,000--could allow us to avoid the drastic cuts in important programs I have mentioned, and much more besides.
Increasing revenue makes sense not only from a deficit reduction perspective, it is also fair. Those at the top, incomewise, have done very well as a group in recent decades, while incomes for most Americans have stagnated. To be specific, the top 1 percent of all income earners has more than doubled their share of total U.S. income in the last few decades--from 8.2 percent in 1980 to 17.7 percent in 2008. Meanwhile, median household income--the income of the typical American family--is now 5 percent lower than it was in the late 1990s. To eliminate programs that are critically important to working families while maintaining tax cuts for those whose incomes have soared would be a grave injustice.
There are also other revenues we could look to if we are truly serious about deficit reduction. There are a number of tax loopholes we can close. For example, we should not continue to give corporations a tax deduction when they send American jobs overseas. We should not allow corporations and wealthy individuals to avoid U.S. taxes by hiding assets and income in offshore tax havens. We should not allow hedge fund managers to earn enormous incomes and yet pay a lower tax rate than their secretaries pay.
The American people are looking to us. They are concerned about the size of the deficit and the effect it might have on future generations. But they also reject the notion that Draconian cuts--cuts that fall hardest on working families--are the answer. They see the wisdom and the fairness in making sure all Americans share in the sacrifices that will be required as we seek to reduce our deficit.
We have an opportunity now to show the American people that we understand too. We can craft a plan now that preserves vital programs, that makes prioritized and necessary cuts in spending, but also a plan that recognizes the need for comprehensive approaches that address revenue as well as spending. In the coming days, we need to adopt such a comprehensive approach.
Madam President, I yield the floor, and I suggest the absence of a quorum.